Rule 424(b)(5)
                                                   Registration Number 333-2546


                    PROSPECTUS SUPPLEMENT DATED JULY 10, 1997

                          Regency Realty Corporation


                               2,052,750 Shares
                                 Common Stock


All of the shares of Common  Stock  offered  hereby are being sold  directly  by
Regency  Realty  Corporation  (the  "Company")  at a price of  $27.25  per share
pursuant to the exercise by Security  Capital  Holdings S.A.  (together with its
parent company,  Security Capital U.S. Realty,  "SC-USREALTY")  of participation
rights under the terms of a Stockholders Agreement dated as of July 10, 1996, as
amended,  with the Company.  Such exercise of participation rights is being made
in connection with an underwritten public offering (the "Underwritten Offering")
by the  Company  pursuant  to a  Prospectus  Supplement  dated July 10,  1997 of
2,415,000  shares of Common  Stock.  An aggregate of  1,785,000  shares  offered
hereby  are being  sold to SC-  USREALTY  concurrently  with the  closing of the
Underwritten  Offering  at the same price per share as the shares  being sold in
the Underwritten  Offering.  Pursuant to its participation  rights,  SC-USREALTY
also has the right to purchase up to 267,750  shares offered hereby in an amount
equal to up to 73.9% of the number of shares purchased by the underwriters  upon
the exercise,  if any, of a 30-day over-allotment option covering 362,250 shares
granted to the underwriters by the Company.

The net  proceeds to the  Company  from the sale of  1,785,000  shares of Common
Stock being sold to  SC-USREALTY  hereby,  after  deducting  estimated  offering
expenses,  will be approximately $48.6 million  (approximately  $55.9 million if
SC-USREALTY elects to exercise its participation rights in full upon exercise in
the Underwritten  Offering by the underwriters of their over-allotment option in
full). The net proceeds to the Company from the sale of the Common Stock offered
in the Underwritten Offering,  after deduction of the underwriting discounts and
commissions and estimated offering expenses, will be approximately $62.2 million
($71.5 million if the underwriters' over-allotment option is exercised in full).
All of the net proceeds from both offerings will be used by the Company to repay
borrowings  outstanding  under the  Company's  revolving  line of credit,  which
matures in May 1999 and had an  interest  rate of 7.18% per annum as of June 30,
1997 (floating rate of LIBOR plus 1.50%).  Such  borrowings were incurred in the
past year to finance the acquisition of shopping centers.

      THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
         AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS
           THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
               COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
                 PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
                              IS A CRIMINAL OFFENSE.